Highlights

Limits of traditional risk management techniques

Risk factor diversification

New risk management measures

Adaptive risk management examples

 

Course goal

Course participants will be introduced to the academic context and practical tools of adaptive risk management techniques. The course ends with the participants reflection on how they could apply the tools in their work environment.

 

Course Target Group

Asset Managers, Pension Fund Managers, Risk Managers, Portfolio Managers, Wealth Managers, Senior Private Bankers, Research Analysts, Trustees, CIO-s, Family Office Managers, CAIA Candidates, CFA Candidates, and other participants interested in improving knowledge and skills regarding Risk Management.

 

Program

  • Workshop Intro
    • Asset Allocation History – A generational overview of asset allocation and risk management techniques

 

  • Limits Of Traditional Risk Management Techniques
    • Normal Distribution & Fat Tails // Limits of historical correlation
    • Popular Myth ‘VaR’ // Popular Myth ‘Market Timing’ // Popular Myth
    • ‘Emerging Markets’ // Popular Myth ‘Mutual Funds’ // Popular Myth
    • ”Tactical Asset Allocation” // Popular Myth ‘Balanced Portfolios’

 

  • Risk Factor Diversification
    • Asset class VS risk factor diversification
    • What are risk factors? How to isolate and analyze risk factors?
    • How to invest in / via risk factors?
    • Difference between risk factor diversification & factor-based investing
    • Practical Examples of risk factor diversification

 

  • New Risk Management Measures
    • Going beyond volatility-based risk parameters
    • Behavioral Finance & Risk Management
    • Risk VS Uncertainty
    • Correlation VS Causality
    • Quantitative VS Qualitative Risk Measures

 

  • Adaptive Risk Management Examples
    • Examples of how pension funds, insurance companies and portfolio managers implemented Adaptive Risk Management techniques
    • Which lessons can be learned from them?
    • Limits of Adaptive Risk Management Techniques

 

  • Applying The Learned Lessons
    • Together with the participants, a case study is prepared interactively to apply the lessons learned throughout the day. Participants will brainstorm about how to use the new methods in their own job / company